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In March 2005, Titan issued US$400 million (HK$ 3.12 billion) of fixed rate guaranteed senior notes (the "Notes") to fund expansion. The Notes have a term of seven years and are due in March 2012. Roadshows were held in Hong Kong, Singapore, London and several US cities. Subscriptions totalled over US$2 billion, making the offer more than five times oversubscribed. The Notes bearing interest at the rate of 8.5% per annum, payable semi-annually in arrears in March and September each year, commencing in September 2005. The Notes have a rating of C by Moody's and are listed on the Singapore Stock Exchange. Morgan Stanley acted as lead manager and sole bookrunner, while Credit Suisse First Boston was co-manager.
The Group repurchased and cancelled the senior notes with a principal amount of US$66.82 million (HK$521 million) in 2008. In the first quarter of 2009, the Group continued to reduce its debt level by further repurchasing senior notes with a principal amount of US$17.82 million (HK$139 million). The outstanding principal amount of the senior notes following such cancellations has been reduced from US$400 million (3,120 million) to US$315 million (HK$2,460 million).
Titan announced in June 2010 that the Company has launched a New Exchange Offer for the 2012 Notes. This New Exchange Offer has completed in July 2010, resulting in approximately US$209,490,000 (i.e. approximately 66.43%) aggregate outstanding primcipal amount of the Exisiting Notes tendered. Following such settlement, US$ 105,870,000 (approximately HK$820,493,000) of the Principal amount of the Existing Notes remain outstanding. (See here for details)
Titan's corporate credit rating with S&P is SD and Caa3 by Moody's.
At 31 December 2009, the Group had total assets of HK$9,446 million (31 December 2008: HK$8,999 million), total bank loans of HK$2,963 million (31 December 2008: HK$1,781 million), no finance lease payables (31 December 2008: HK$1 million), the Notes of HK$2,491 million (31 December 2008: HK$2,622 million), the convertible, preferred shares as non-current liability portion of HK$645 million (31 December 2008: HK$573 million) and the Notes payable as non-current liability portion of HK$204 million (31 December 2008: HK$198 million). The gearing of the Group, calculated as the total bank loans, finance lease payables, the Notes and Notes payable to total assets, was 0.60 at 31 December, 2009 (31 December 2008: 0.51). |
